Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
charleswyatt
New Member

Why is my sale of Tax exempt mutual fund treated as capital gain?

I got a 1099-B form from USAA showing I had liquidated $15000 on 3-19-2016. TurboTax is showing this as taxable event

1 Best answer

Accepted Solutions
MR_ED
Level 3

Why is my sale of Tax exempt mutual fund treated as capital gain?

The tax exempt dividend paid by the fund is not taxable but any capital gain if you sell shares is a taxable event.

View solution in original post

2 Replies
MR_ED
Level 3

Why is my sale of Tax exempt mutual fund treated as capital gain?

The tax exempt dividend paid by the fund is not taxable but any capital gain if you sell shares is a taxable event.

bwa
Alumni
Alumni

Why is my sale of Tax exempt mutual fund treated as capital gain?

It is a taxable event.  On (as example) tax free bonds, the interest is tax free.  The gain on sale is not.

Dynamic AdsDynamic Ads
Privacy Settings
v